Why the market is in a recovery phase: No more drops?

After the major fluctuations that caused the market to shake violently, leading to a series of accounts being liquidated and investor confidence being shaken, the market seems to have transitioned to a new phase: no more sharp declines. Below are the explanations for this phenomenon and predictions for the future. Current Situation 1️⃣ Caution Dominates: After the recent sharp correction, investor sentiment is dominated by concern and caution. Most traders are no longer willing to take long positions with high leverage. This reduces the risk of mass liquidation and stabilizes the market. 2️⃣ Completed Goals: The recent downturn was not random. Its goal was to "clean up" over-leveraged positions and prevent exchanges from suffering large losses when the uptrend lasted. Currently, with high-leverage traders being filtered out, the market has no reason to create further deep declines. 3️⃣ Smart Strategies of the Giants: The big players (whales) and the exchanges don't want to "threaten" investors to the extent that they completely abandon the market. Instead, they want to create just enough fear to reset the order, then restore confidence before triggering the next big wave of volatility. What Will Happen Next? Currently, the market seems to have shifted from liquidating long positions to short positions. This means that the price will be gradually adjusted upwards to trigger the liquidation of short orders, thereby pushing the price higher. With fear still present, many investors are not yet daring to return to the market, which creates a great opportunity for those willing to "buy the dip" before the price actually recovers. Strategic Forecast Short-Term Investment Opportunities: The present moment can be an opportunity to buy before the market recovers sharply. However, this should be done with careful risk management, avoiding the use of excessive leverage. Market sentiment will change: As prices gradually increase, investor sentiment will shift from fear to expectation. This could lead to a new growth cycle if macro conditions and cash flows continue to support. Trader Alert: Don't let the current bull runs fool you. Major corrections are always possible, especially if market sentiment returns to a state of excessive euphoria. Closing Remarks The market has gone through a tough "cleansing" phase and is now transitioning into a recovery phase. This may be a good time to build a smart investment strategy, but don't forget that the market is always cyclical. Always be vigilant and prepare for all scenarios to protect your investment portfolio.